- One of the Chinese polyolefins producers contacted by SSESSMENTS.COM’s team on June 22 informed that the producer decided to increase PE offers between CNY75-100/ton ($11-14/ton) as compared to last week’s level. Limited supply at the producer’s end and the firm feedstock prices claimed as the supporting factors behind the upward price adjustment. Demand-wise, the source stated that demand for LLDPE Film C4 is slightly better than last week following the higher prices. However, it cannot be considered strong since this period is the traditional low season for PE in China.
- A Chinese trader informed SSESSMENTS.COM pertaining to the availability of Iranian cargoes. According to the source, at the beginning of June, Iranian cargoes were not able to be docked at Qingdao Port. Some ships are in lines to unload the cargoes. As of recent, Iranian ships are not able to dock at Shanghai Port. As there are some delays for the arrival of Iranian cargoes, traders have no inventory pressure and are able to maintain firm offers for localized Iranian PE cargoes in the spot market. Further explained, several factors act as a foothold for Iranian PE cargoes to be on the uptrend. First, limited availability as a result of the disruption in production activities amid coronavirus and the inspection for safety concerns which led to the delivery delays. Second, as the US stated that all countries have to apply proper actions to put sanctions on Iran, some converters who have healthy cash flow are willing to stock some materials in anticipation of further delivery delays.
